Does the ~10 month break even estimate take into account the reward halving? The expected increase in difficulty?
This is just an estimate (it's also written in the notes). It takes in consideration several parameters but it's just an estimate. I can't foresee the future. It takes in account reward halving and the completion of older accounts, leaving their infrastructure for the remaining active ones. Moreover, new infrastructure gets cheaper and cheaper so the hashing power dedicated to each account increases with time.
Reward halving seems that it will happen some weeks before expectations, so there is really a chance that things may slow down a bit.
Can you describe the assumptions that were made to get to that estimate. E.g.:
- What is the assumed pyramining hashing power growth over those 10 months?
it depends on new deposits and the availability of new hardware devices (ASICs for example).
- What is the assumed difficulty growth?
It's like asking me which Powerball lottery combination will win the next time!
- What is the assumed number/ratio of referrals of the account?
Here there is no assumption. The more referral deposits you get, the shorter your breakeven will be. There are accounts which completed in 3 months.
- What is the assumed growth of the fee per block?
It's not taken into calculation yet. Too little.
- What is the assumed growth of the cost of electricity?
I hope it will not grow. Besides there is also a photovoltaic plant that should prevent/reduce the effect of an eventual electricity cost increase.
- Any other assumptions?
I assume that this service doesn't give more warranties than investing in your own mining equipment.
There are however some advantages investing here instead on your own hardware:
- If you buy hardware yourself you would get less hashing power. I am doing really a lot of efforts to buy infrastructure hardware at the best prices possible. These efforts included to produce our own FPGA boards (on license), and R&D and partnering with other companies for future ASICs.
- New deposits raise the average MH/s for every account.
- You don't need to care about maintaining/operating the service, the noise of the fans, the heath generated, space occupied, and so on. I'll do it for you in a professional way (this part shares something with my main job, so I think I am suited to do it very well).
If you invest anytime in your own equipment it's unlikely to be better than investing it here.
Should mining become not profitable one day, even Pyramining won't be. Here we do mining, not magic. :-)
Sorry if this has already been asked, I haven't gone through the 32 pages of the thread yet.
This information should be in the FAQ anyways as it is all a potential investor has to base his decision on.
I'll try to update F.A.Q. in the next days.
10% profit in ~11 months is reasonably acceptable but if that estimate is based on unrealistic assumptions, I'd like to know before sending my coins.
You should invest into Pyramining if you want to invest in Bitcoin Mining yourself and want to take all the advantages offered.
I also find it a bit worrisome that the announced ASICs are just being discounted as be vaporware.
I won't consider ASICs until I will see one working. As I stated, we're also working to get an ASIC solution, but it will not be anytime soon. If Butterfly Labs will really ship ASIC things on October, I will buy BFL until something better will be available.
It seems to me that given the game changing nature of the ASICs when (not if) they come out, it would be prudent to dedicate a fraction of the investments into pre-ordering some of the announced ASICs as they are expected to come out within the next couple of months.
I don't want to invest (your) money into something that does not exist. If they run with the money or if they release a faulty product, you will complain about my bad decisions. I invest all deposits in what I consider the best solution available in that moment. If you want to invest in ASICs, hold your funds until they will be available, I can't hold them on your behalf.
I hope that everything is clear enough... should you have any other questions or if you want to discuss any point, feel free to do it.